Health expenditure highlights

  • Total health expenditure includes recurrent and capital expenditure by Australian governments and individuals. In 1992-93 it was $34.3 billion or $1,954 per person.
  • Health expenditure rose in constant prices  at an average annual rate of 4.2% from 1982-83 to 1992-93, giving  a total rise of 50.3%.
  • Health expenditure per person rose at an average annual rate of 2.7% in constant prices  between 1982-83 and 30.8%.
  • Health expenditure as a proportion of gross  domestic product (GDP) was estimated to be 8.5% in 1992-93,compared with  7.7% in 1982-83.
  • The private sector  share of health expenditure rose from 28.1% in 1984-85  to 32.2% in 1992-93.  This rise in the private sector  share  was reflected in a fall in the public sector  share,  from  46.1% to 44.3% for the Commonwealth Government and  from  25.8% to 23.5% for State  and  local government between 1984-85 and 1992-93.
  • The Commonwealth Government share of health expenditure fell from 1984-85 to 1989-90, but since then has risen from 42.2% of expenditure in 1989-90 to 44.3% of expenditure in 1992-93.
  • The Commonwealth Government share of public sector funded expenditure fell from 64.1% in 1984-85 to 61.4% in 1989-90, but since then has risen to 65.4% in 1992-93.
  • The health services subgroup of the CPI rose over twice as fast as the overall CPI and the overall health price index in the period 1984-85 to 1992-93. The CPI health services subgroup only covers the privately funded portion (health insurance funds and individuals) of health expenditure.
  • The annual growth rate of real health expenditure per person in Australia was 2.2% over the period 1979-80 to 1989-90. This rate is slightly higher than the average growth rate of 2.0% for seven selected member countries of the Organisation for Economic Co-operation and Development (OECD) and greater than the growth rate in the United Kingdom, West Germany, New Zealand and Sweden (Table 21).